24th May 2021 10:54
Randall & Quilter Investment Holdings Ltd - Bermuda-based firm focused on non-life legacy insurance and program management - Pretax profit in 2020 drops 21% to GBP30.2 million from GBP38.1 million in 2019, as net claims provisions double to GBP309.8 million from GBP143.2 million year before. Gross written premiums grow 72% to GBP772.1 million from GBP450.2 million, with net earned premiums more than doubling to GBP366.9 million from GBP165.2 million. Notes contracted premiums in Program Management unit rise 52% to USD1.28 billion from USD841.9 million.
Declares final dividend of 0.2 pence, taking annual dividend to 4.0p, up 5.3% from 3.8p in 2019.
Executive Chair William Spiegel says: "I believe 2020 at R&Q can best be described as a year of accelerated growth. Our Legacy Insurance business reported its strongest year ever and our Program Management business, after just four years, became profitable. With both of our businesses profitable, we now have the foundation to continue accelerating our growth and delivering sustainable earnings in the years to come.
"We also added a complementary business to Program Management when we made a 35% investment in Tradesman Program Managers, one of our core [managing general agent] program management partners. This investment increases our exposure to fee-related profits, and we anticipate exploring further opportunities to emulate this approach with other MGAs to whom we provide program management services."
"We remain in the enviable position of competing in growing markets that offer us the opportunity to reinvest our capital at high rates of return, creating long term shareholder value. With significant growth opportunities in front of us, our business will continue to consume capital over the near term, particularly our Legacy Insurance business. Over time, however, we expect our Program Management business to create enough free cash flow to make us capital self-sufficient," Spiegel adds.
Current stock price: 161.00 pence, down 5.9% Monday
Year-to-date change: down 8.5%
By Paul McGowan; [email protected];
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